Advertisement
Business

Standard Bank profit 50% up

Advertisement
Sunbird Board chairperson, Phillip Madinga

Malawi Stock Ex­change-listed Stan­dard Bank plc has announced an increase in prof­it-after-tax by 50 percent, for the year ended December 31 2020, to K23.7 billion.

The performance reflects re­silience of the bank’s business despite a challenging operating environment and subdued eco­nomic activity due to the Covid pandemic.

A financial statement co-signed by Standard Bank Chief Execu­tive Philip Madinga and Board Chairperson Ngeyi Kanyongo­lo shows that the net profit was 50 percent above that for 2019 (K15.9 billion).

Advertisement

This is attributed to growth in net interest income as a result of growth in deposits and its invest­ments and loan book.

“Twenty-twenty as a challeng­ing year due to the impact of the pandemic which affected the economy and operations of most businesses. However, despite the uncertain and challenging op­erating environment, the group posted a set of strong results,” the statement reads.

The bank notes that overall economic growth in Malawi re­mained weak due to the Covid pandemic and a volatile political environment that followed the presidential election.

Advertisement

It forecasts that Covid would likely continue to affect business growth despite a good agricultur­al season which could help offset the negative effects.

At the micro level, Standard Bank notes that the pandem­ic hampered the growth of its non-interest revenue due to re­duced business activity and a 40 percent reduction of fees on in­ternet banking, mobile payments and other related services as a cushion to customers on Covid impact.

In contrast with 2019, and prior to the Covid outbreak, Standard Bank’s non-interest revenue was three percent above 2018 levels due to growth in transaction vol­umes.

Standard Bank notes that the Covid pandemic will continue to threaten prospects throughout 2021.

“The negative economic effects of the Covid pandemic will likely continue in 2021. Currency pres­sures are expected to continue largely driven by weak foreign currency inflows which can be partly attributed to the ongoing pandemic,” the statement reads.

Notwithstanding the negative effects of the pandemic, Standard Bank earnings per share grew by 48 percent from K68 in 2019 to K101 in 2020, shows the state­ment.

On measures to sustain its prof­itability amidst Covid, Standard Bank says it will continue to focus on digitisation in order to improve customer experience, as well as operational cost manage­ment.

“We will continue to drive cost rationalisation by investing for the future, prudent management of risk and liquidity, diversifying balance sheet and maintaining a healthy capital position as the core of what we do,” the state­ment reads.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker